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adidas Warns of US Price Hikes Despite Doubled Growth
While adidas's Q1 results have impressed analysts, the German company is not convinced that it will be safe from the impact of US President Donald Trump's sweeping tariffs on global trade with the US. Despite beating forecasts by reporting net income jumping 155% in the first quarter of 2025, adidas emphasized its worries about the uncertain trade landscape.According to CNBC, adidas said "Higher tariffs will eventually cause higher costs for all our products for the US market," in a statement. "Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be," adidas continued."Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products."Though much of the discourse has centered on the outsized impact the tariffs will have on China, where Trump has enacted a 145% tariff on goods, adidas shared that the general increase on all countries is what is causing the most caution. Countries that adidas manufactures in like Vietnam and Cambodia, are looking at more than 40% in tariffs, if another deal isn't agreed upon.It seems that as soon as adidas began to bounce back from its controversial partnership with Ye, the start of Trump's controversial US second term has thrown in wrench in its recovery. However, the brands healthy outlook boosted by popular styles like the Gazelle, Samba, Stan Smith, and Superstar is a cause for optimism as other competitors struggle to weather the storm. In March, analysts reported that Nike may see the worst revenue drop since the COVID-19 pandemic rocked the industry due to its waning performance.As of the time of writing, adidas has not shared specific details on how prices will increase in the US. Stay tuned to Hypebeast for the latest updates.Click here to view full gallery at Hypebeast
While adidas's Q1 results have impressed analysts, the German company is not convinced that it will be safe from the impact of US President Donald Trump's sweeping tariffs on global trade with the US. Despite beating forecasts by reporting net income jumping 155% in the first quarter of 2025, adidas emphasized its worries about the uncertain trade landscape.
According to CNBC, adidas said "Higher tariffs will eventually cause higher costs for all our products for the US market," in a statement. "Given the uncertainty around the negotiations between the US and the different exporting countries, we do not know what the final tariffs will be," adidas continued.
"Therefore, we cannot make any ‘final’ decisions on what to do. Cost increases due to higher tariffs will eventually cause price increases, not only in our sector, but it is currently impossible to quantify these or to conclude what impact this could have on the consumer demand for our products."
Though much of the discourse has centered on the outsized impact the tariffs will have on China, where Trump has enacted a 145% tariff on goods, adidas shared that the general increase on all countries is what is causing the most caution. Countries that adidas manufactures in like Vietnam and Cambodia, are looking at more than 40% in tariffs, if another deal isn't agreed upon.
It seems that as soon as adidas began to bounce back from its controversial partnership with Ye, the start of Trump's controversial US second term has thrown in wrench in its recovery. However, the brands healthy outlook boosted by popular styles like the Gazelle, Samba, Stan Smith, and Superstar is a cause for optimism as other competitors struggle to weather the storm. In March, analysts reported that Nike may see the worst revenue drop since the COVID-19 pandemic rocked the industry due to its waning performance.
As of the time of writing, adidas has not shared specific details on how prices will increase in the US. Stay tuned to Hypebeast for the latest updates.
Click here to view full gallery at Hypebeast
